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CLASS FOUR

Chapter 4 – Connecting the Dots: Breakdowns, Budgets, and Finance

PURPOSE OF THE CLASS:

To examine the impact that creative, legal, and technical decisions have on the budget

To look for professional and creative ways to research and determine costs

To research what is involved in financing an idea for television

CLASS/CHAPTER TALKING POINTS:

1)Break the idea down

2)Budget the idea

3)Find the financing

HANDOUT (at the end of this chapter and on the web site):

  • Project Breakdown Sheet
  • Budget Estimate
  1. Break the idea down .

The producer recognizes that the story/script and its nuances are important to the integrity of the project. However, the producer must often switch hats from that of the creative gatekeeper to being the hard-line taskmaster when it comes to budgets. The producer is generally in charge of a budget, and often raises the funds for the project.

Predicting a concrete budget for an intangible idea is the producer’s challenge. To make a reasonable budget, the project is broken down into basic elements, and costs assigned to each element. One helpful tool is the Project Breakdown Sheet (found at the end of this chapter and on the web site). By doing a breakdown of the script, treatment, or simple idea, the students can more easily visualize which items or personnel may be part of their own project, and then assign costs to each.

Class Discussion:

What creative and technical items and personnel might be part of your Dream Project? (List the answers on the board in one of three columns marked Pre-

Production, Production, and Post-Production. Leave them on the board

for reference later in the class.)

How do you find out the cost of each of these items?

Organization is integral to producing. Producers create their own systems and methods of organizing information–such as contact lists, shooting schedules, memos, budgets, and hundreds of other project details. A production book is a standard way to organize each project; so is storyboarding and scheduling the shoot itself. Section 1 provides detailed information and format guidelines.

Producers are familiar with current trends in the television industry. They know what programming is being bought, developed, and broadcast by what specific networks, cable channels, Internet, and other forms of media. They know the demographics of their potential audience, and they read industry trade publications and online sources. They know they must consistently be open to understanding the overall creative and business aspects of the television industry. The demand for television and new media programming reaches out to the global markets.

Class Discussion:

What are the possible venues to whom an idea can be sold? Who might buy your Dream Project?

(List the answers on the board)

Before a producer brings an idea to a possible buyer, it’s important to create a budget for it and to have an overall sense of how much it will cost to produce that project.

  1. Budget the idea

The producer’s job is to take the hundreds of disparate production details and categorize them into a budget. One option is to divide all costs into the three stages of a project:

Pre-production

Production

Post-production

Class Discussion:

(Referring to the list from in Section 1, above, randomly pick out 8-10 items and personnel. List them on the board with enough space to list figures after them.)

What cost or rate would you “guestimate” for each?

After a producer assigns a cost to an item, the next phase is to calculate for how long that item will continue to cost money. The need for accurate and creative scheduling has a direct effect on the budget and quality of a project. For example, a camera might cost $500 a day to rent – but for how many days does it need to be rented?

Class Discussion:

How would you budget each of these items and personnel: by the hour, the day or week, or as a flat fee?

(If possible, after the students have “guestimated” costs, tell them what they actually cost. Compare their expectations to the real-world amounts.)

Producers also consider costs such as insurance, legal fees, accounting and payroll services, etc. Insurance in particular is mandatory, covering general liability and other specifics.

No matter how cleverly the producer may predict the production costs, life can get in the way of every good plan. In creating the budget, the producer understands the difference between the estimated budget and the actual budget. The estimated budget is based on a reasonable projected budget before the fact; the actual budget reflects what money was really spent.

Class Discussion:

What examples can you think of that could alter a budget – plus or minus?

A hurricane stops production for a week; the director cites “creative differences” after stalking off the set; a camera is defective and a day’s worth of shooting is ruined. An actor is written out of the script, or you need fewer shooting days.

  1. Find the financing

After the budget comes the reality: finding the money. If the project is bought by a network or a client, the producer focuses primarily on managing the money when it comes in. But if the producer wants to make the project independently, the money must be raised from various sources.

Class Discussion:

What are some of the ways that money can be raised for a project – either all the funding or some of it?(List on the board)

Financing can come from investors, co-production deals, grants, bank loans, barter, friends and family, etc. Students are also in a good position to get student discounts on equipment, personnel, and stock; most schools that offer production courses also supply insurance packages and extra perks for enrolled students.

OPTIONAL HOMEWORK ASSIGNMENTS ______

  • Read Chapter 4. Answer and submit answers to review questions.
  • Distribute Project Breakdown sheet (following). Based on rough drafts of their Dream Project, categorize the project’s necessities on the sheet.
  • Create and keep a production book. Following the guidelines in Section 1 of the textbook, make a similar book in which to organize the Dream Project.
  • Start the budget. Download the budget template with the summary sheet from the web site. Or, find another template that works for your project. Study it; like a cross word puzzle, fill in what you now know, and fill in the other costs as you get them.

Dream Project. Distribute the Budget Estimate (following). As one of several budget exercises, “guestimate” what some of the costs might be, based on the Dream Project’s rough draft and the breakdown, above.

TV Watchdog. Respond to any or all of the following:

  • Actors. How many primary and secondary actors? How many extras?
  • Sets and Locations. How many of each? How is each dressed with props or furnishings?
  • Cameras and microphones. Judging by the different camera angles and placements, how many cameras were used? How many mics?

PROJECT BREAKDOWN SHEET

Breakdown Page #______Scene #_____ Page #_____

Project Title______

Location/Studio______Set______

Int______Ext ______Day______Night______Dawn______Dusk______

Scene Description______

Cast

/

Extras/Background

/

Stand-Ins

Stunts

/

Wardrobe

Props/Set Dressing

/

Hair/Make-Up

/

Special Make-Up EFX

Cameras

/

Special Equipment

/

Cranes/Grip/Electric

Transportation / Visual EFX / Music/Audio/Sound EFX
Wranglers/Animals / Other / Production Notes

Prepared by ______Date______

 CLK

BUDGET ESTIMATE

Project Title

Date

  1. Project Supervision (# of days)

Executive Producer

Producer

Production Coordinator

Production Assistant

D.P. - Technical Scout

Other

Total I $

  1. CreativeS (fees)

Writer (Script and revisions)

Director (# days for prep, shoot, and/or post-production)

Other

Total II $

  1. Talent (# days, rehearsal & shoot)

Casting Director

On-camera Union Principals (#)

Pension & Welfare, Fringes

Agents’ Fees

Other

Total III $

  1. Video Shoot - Labor (# days & location)

Director of Photography

Camera Operator (s)

Gaffer (s)

Videotape Engineer / Tape Operator

Utility

Technical Director

Audio Engineer

Grip (s)

Make-up and Hair

Wardrobe

Script Coordinator

Production Assistant

Overtime (# hours per crew member)

Other

Total IV $

  1. Pre-production & Wrap

Messengers

Shipping

Phone/Fax/Cell Phones/Walkies

Casting

Casting Facilities

Production Insurance

Legal Fees

Accounting/Payroll

Other

Total V $

  1. Location Expenses

Van Rental

Parking, Tolls and Gas

Craft Services/Meals

Other

Total VI $

  1. Equipment Rental (# days)

Camera Rental (Full Packages)

Sound Rental

Lighting Rental

Grip Rental

Switcher Package

VTR Rental

Dolly/Jib/Crane

Teleprompter and Operator

Production Supplies

Other

Total VII $

  1. Raw Stock

Video Stock - #

Audio Stock - #

Polaroids/Digital

Other

Total VIII $

  1. AUDIO Recording

Production Sound/Wild Track

Music (Original and/or Stock)

Music Rights - Limited

Misc. Audio Elements

Other

Total IX $

  1. Post-Production

Off-line Edit (# hours/days)

On-line Edit (# hours/days)

Additional Graphics / Video Effects

Audio mix/sweetening (#hours/days)

Miscellaneous Dubs and Masters

Working Meals

Other

Total X $

TOTAL COSTS $

Note:This estimate is based on preliminary data provided by the client, and does not necessarily reflect the final costs. This estimate represents approximately plus or minus 10% of the final total.

Estimate does not include the following costs or expenses:

[detail possible expenses here that have not been factored into the

above categories.]

 CLK